Landlords split on proposed PRS Ombudsman

Landlords are not convinced about how fair the proposed mandatory Private Rented Sector (PRS) Ombudsman will be if the Renters (Reform) Bill becomes law.

The regulatory body will offer an impartial and efficient resolution of disputes between renters and landlords – but without costly legal proceedings.

However, a survey by Landbay, found that landlords are divided with 48% saying they needed more information about the body before saying it is a good idea, or not.

The lender did find that 42% of landlords welcomed the concept of the Ombudsman, saying it would help to quickly resolve issues and avoid court.

Just 10% of landlords are against the Ombudsman’s creation.

A need for impartiality and speed to address rental disputes

The enthusiastic supporters of the Ombudsman said there is a need for impartiality and speed to address rental disputes instead of going to court.

However, of the landlords who oppose the creation of an Ombudsman, they said the set-up might consistently favour tenants and would be a ‘money-making scheme’.

Critics also worry about the Ombudsman’s ability to quickly resolve disputes with some landlords noting that a government-run department would be a slow administrative hurdle to deal with.

The Renters (Reform) Bill, which underwent its first reading in the House of Commons in May, represents a substantial legislative overhaul that could significantly reshape the rental landscape.

However, its journey toward becoming law is expected to be protracted, with an estimated timeline that would see it become law stretching into late next year or even 2025.

‘Uncertainty around the idea of a Private Rented Sector Ombudsman’

Landbay’s managing director, Paul Brett, said: “Our survey found uncertainty around the idea of a Private Rented Sector Ombudsman.

“On the positive side, it would be good if disputes could be quickly resolved without having to go to court, but there is some scepticism as to how quick this would be.”

He added: “It appears that more information is needed before such a scheme is created.”